Finding flexible and affordable financing can be challenging for any business. Increasing interest rates and restrictive bank terms often make it impractical for SMEs to access the finance they need.
Are you a business owner who needs more flexible finance options? Or perhaps you’re a commercial finance broker seeking better financing solutions for your clients? At Octet, we understand that the banks’ offerings are often too inflexible and take too long to approve. So, we’ve developed our new business Term Loan, a tailored financial solution designed to help you meet your business goals.
Whether you need a working capital loan for operating expenses, equipment financing, asset finance, or to restructure existing loan facilities, our Term Loan allows you to capitalise on opportunities, consolidate debts and grow your business.
Flexible financing for every business
With financial pressures continuing to impact SMEs, we’ve received feedback from our valued clients and broker network about the need for more flexible and affordable finance solutions. So, we launched the Octet Term Loan.
“We’ve listened directly to our clients, our referral partners and the market. We understand the need for a supplementary term loan product that we can package with our existing working capital loans for SMEs,” says Allan Howe, Octet’s Director of Working Capital Solutions, Queensland.
Our Term Loan is available to both existing and new Octet clients with Trade Finance or Debtor Finance facilities. Those registering for these facilities are also able to apply for the Term Loan, which offers up to $2 million in additional working capital with flexible repayment periods ranging from six months to three years. It’s the ideal solution for businesses seeking a short-term business loan.
“We have designed it to be very flexible, and can tailor the term of the loan to suit your business needs,” says Allan.
Our Term Loan empowers you with additional working capital to help you meet your business goals, such as investing in assets and new equipment, covering operational costs during quiet periods or consolidating existing loans.
A tailored solution for your business needs
Invest in assets, plant and machinery
Our Term Loans can be used to invest in assets to grow your business, secure additional space for your business or invest in machinery or equipment.
If a missing piece in your business is holding it back or slowing your growth, a fast cash injection can help. “It’s all about providing the extra firepower so you can seize opportunities and grow your business,” says Allan.
Keep on top of operational costs
Cash flow shortages can impact business growth. When cash flow slows, our Term Loan can help you manage operational costs efficiently. Pay for everyday expenses such as payroll, inventory, rent and utilities.
Pay out or retire existing debt
Use the Term Loan to retire or pay new and existing debt, including debt owed to creditors and the ATO. By retiring or paying out existing debt, your business can improve its cash flow, enhance its creditworthiness, have more flexibility in its daily operations and increase financial stability.
Consolidate existing loans
Our business Term Loan can be used to consolidate loans, giving you the ability to simplify loan repayments, reduce interest with our competitive interest rates or decrease monthly payments by extending loan terms.
With a fast approval process and competitive rates, you can easily consolidate loans, saving time and money.
Ready to grow? Apply for a Term Loan today
Octet has the financial tools you need to succeed. Already an Octet client? You can apply for a Term Loan of up to $2 million with flexible repayment terms ranging from six months to three years. Not registered yet? Contact us today and discover how we can help.
From insolvency protection to coverage for protracted defaults, Octet has you covered
When added to our Debtor Finance facility, Octet Buyer Protection safeguards your business from the misfortune of bad debts.
Protect your receivables against insolvency and protracted default events.
Enjoy extensive coverage for up to 90% of the protected debt.
Includes easy, discounted collection costs for eligible overdue protected debts.
Let Octet handle all the paperwork and applications, leaving you free to focus on what you do best – growing your business.
Octet Buyer Protection provides a shield against unforeseen events
Insolvency Protection: In the unfortunate event of an insolvency, including the appointment of administrators or liquidators, Octet Buyer Protection steps in to safeguard your interests. Rest assured that your receivables are protected from the impact of insolvency proceedings.
Protracted Default Coverage: Even in cases of prolonged non-payment, Octet Buyer Protection has you covered. If a buyer fails to fulfill their payment obligations for an extended period of time, our protection kicks in, mitigating the financial strain caused by protracted defaults.
Buyer Protection Limit Fee: A nominal fee of $100 (+ GST) for each protected buyer ensures that you have access to our robust protection.
Protected Receivables Fee: Each month, you pay a fee based on a percentage of receivables. If this fee falls below the set minimum amount, you will be charged the minimum monthly fee instead. Know exactly what you pay for, with no surprises along the way.
Apply for Octet Buyer Protection today and protect your future business success
Send Email – buyerprotection@octet.com By Phone – Call your Supply Chain Relationship Manager on 1300 862 838.
Some details we need from you:
Legal business name of the Buyer
Buyer’s registered ABN or ACN
Desired Protected Limit that is required
Buyer’s credit or payment terms
Expected annual turnover with the Buyer
Outstanding invoices overdue by > 30 days
Any other relevant information
While Buyer Protection offers extensive coverage, there are some exclusions
Invoices under dispute are not covered
Invoices with payment terms exceeding 90 days
Debts incurred while a buyer is in a state of default are not covered
Protection is not applicable for debts below $5,000
Buyers outside Australia are excluded
Buyers not approved for protection due to adverse information are ineligible
Federal, state, or territory government entities are excluded
Except for trustees, trust entities are excluded
Transactions involving related parties are not covered by Octet Buyer Protection
Terms and Conditions apply. Amounts that are above the Protected Limit (at the date of loss) are excluded. The Buyer Protection Limit must be held on the correct legal entity. Buyer Protection cover is active from the date you receive a formal notification of an approved Protected Limit from Octet. Please consult your dedicated Octet Relationship Manager for full Terms & Conditions. This is a summary only and must be read in conjunction with the full Terms & Conditions under the Buyer Protection Addendum.
In the competitive world of commodities trading, maintaining a steady cash flow is essential for seizing new opportunities and managing everyday operations. With the pivotal advice and introduction by a commercial finance broker, Octet Finance supported a thriving business in the commodities trading and logistics sector, helping them overcome financial challenges and achieve sustained growth.
Identifying the financial challenge
Established in 2008, this business has steadily grown to become a leading player in the international trading of various agricultural commodities, as well as recycled paperboard, packaging and scrap metals. Their operations handle approximately 200,000 metric tons of grains, pulses, and oilseeds for export markets annually. With a robust procurement model that ensures full traceability from farm to mill, they have established long-term supply contracts with farmers and leveraged third-party warehousing in key port zones across Australia. This setup allows them to reduce costs and offer competitive pricing to customers worldwide.
Despite their success, the business faced a significant challenge: managing the cash flow required to support their rapid expansion. Their existing trade finance facility, provided by a more traditional financier, was no longer sufficient to meet their growing needs. They required additional working capital to continue their growth trajectory and maintain their competitive edge in the market.
Recognising the need for expert advice, the business turned to a trusted commercial finance broker. The broker, well-versed in the financial intricacies of commodities trading, quickly identified that the company’s existing financial arrangements were insufficient for their expanding operations. Understanding the business’s goals and financial structure, the broker recommended considering working capital finance as a solution to their cash flow issues.
The broker then introduced the company to Octet, who provided a tailored financial solution which proved to be a game-changer for the business.
Formulating a tailored financial solution
In considering the operational requirements of the commodities trading sector, Octet identified the need for a customised finance solution, providing the business with a $1m trade finance facility, specifically designed to address their working capital requirements. This facility enabled the company to manage their cash flow more effectively and seize new business opportunities without the constraints of limited funding.
Octet’s approach was not just about providing capital; it was about understanding the business’s unique needs and challenges. “By working closely with the company’s leadership, we tailored a solution that aligned with their operational model and growth ambitions,” says Brendan Green, Octet’s General Manager of Working Capital Solutions.
Transforming operations with additional capital
The injection of working capital from Octet had an immediate and transformative impact on the business. The trade facility was then increased to $4m to support its overall procurement requirements with a strategic supplier. The additional capital allowed the company to increase its acquisition of commodities, ensuring they could meet the growing demand from their customers. This expansion was crucial for maintaining their market position and continuing their growth trajectory.
With the flexibility provided by the financing, the business could manage its cash flow more effectively. This enabled them to pay suppliers promptly, secure better terms, and avoid the pitfalls of delayed payments that could disrupt their operations.
Improved cash flow and additional working capital also empowered the company to explore new business opportunities. Brendan adds, “They were able to enter new markets, diversify their product offerings, and establish stronger relationships with suppliers and customers alike.”
Additionally, the financial support from Octet strengthened the company’s overall financial stability. This was particularly important in a volatile industry where market conditions can change rapidly, and having a stable financial base made all the difference.
Planning for a prosperous future
The partnership with Octet marked a turning point for the business. With their immediate working capital needs addressed, the company could focus on strategic growth initiatives and long-term planning. They continued to leverage Octet’s expertise and financial solutions to navigate the complexities of international trading and maintain their competitive edge.
The role of the commercial finance broker was also instrumental in this success story. By understanding the business’s challenges and introducing them to the right financial partner, the broker facilitated a crucial connection that enabled the business to thrive.
Today, the business stands as a testament to the power of strategic financial support. Their story highlights the importance of having a financial partner who understands the unique challenges and opportunities of their industry. With Octet and their broker by their side, the business is well-positioned to continue its growth journey and achieve even greater success in the future.
Speak to our team of working capital specialists to see how we can power your business growth today.
Disclaimer: These comments are only our views and should not be construed as advice. You should act using your own information and judgment. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy, and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgment as at the date of publication and are subject to change without notice.
Working capital finance is a crucial business finance solution that helps organisations maintain adequate cash flow to effectively manage operational costs, invest in new distribution streams and expand into new products or markets without accessing their cash reserves. This type of financing addresses short- to medium-term needs, enabling businesses to cover essential expenses like stock, payroll, equipment and accounts payable. It can also assist businesses with accelerating the cash flow around their outstanding commercial invoices.
Commercial finance brokers play a vital role in helping businesses access working capital finance. These brokers facilitate various financing options to bridge gaps between cash inflows and outflows, especially during slow receivable periods or seasonal fluctuations. For commercial finance brokers, understanding the intricacies of working capital finance is crucial to advising business owners and financial decision-makers effectively.
When and how to access working capital finance
Working capital finance is primarily used by small-to-medium sized businesses across a wide range of industries, including retail, manufacturing, labour hire and healthcare services. These businesses often face cash flow challenges due to slow receivables, seasonal fluctuations, or the need to invest in greater inventory levels and more advanced equipment. Commercial finance brokers can identify and recommend the most suitable working capital finance solutions to meet their business client’s unique needs.
Dan Verdon, Octet’s NSW Director Working Capital Solutions, says that applying for working capital finance typically involves assessing the business’s cash flow needs and selecting the appropriate financing option. According to Dan, brokers support businesses in this process by evaluating their financial health, understanding the cash flow cycle, and recommending tailored funding solutions.
“For instance, a manufacturing company with a substantial accounts receivable might benefit from debtor finance, while a healthcare business importing medical consumables needing to pay overseas suppliers promptly will likely find trade finance more advantageous,” explains Dan.
Common types of working capital finance
Dan says it is important to understand the different types of working capital finance, how they work, and what’s best for the business’ situation.
“Navigating the various types of working capital is essential for optimising cash flow and ensuring supply chain management efficiency,” says Dan. “Understanding the best options for the business’ needs can enhance financial stability and provide a competitive edge.”
The various types of working capital finance include:
Debtor (Invoice) Finance: Access funds tied up in outstanding business invoices, providing immediate, personal security-free cash flow based on the accounts receivable.
Trade Finance: A revolving line of credit allowing businesses to pay their local and global suppliers quickly, improving cash flow and speed to market.
Term Loans & Asset Finance: Quick funding with fixed repayment schedules, ideal for immediate cash flow needs.
Trade Credit: Suppliers extend payment terms, allowing businesses to defer payments for goods and services, thereby managing cash flow more effectively.
Lines of Credit: Flexible access to funds up to a predetermined limit, allowing businesses to withdraw as needed.
Bank Overdraft: A short-term financing option that allows businesses to withdraw more money than is available in their account, up to an agreed limit.
The benefits of working capital finance
The benefits of working capital finance can be substantial. It improves cash flow, supports efficient operations, and enhances the business’s ability to seize growth opportunities. “By leveraging these financing options, businesses can maintain short-term stability and focus on long-term success, ensuring resilience and adaptability in a competitive market,” states Dan.
However, it is important to align the strategic implementation of supply chain financing with the requirements of the business. Some aspects to consider are:
Align financing with cash flow cycles: Ensure that the chosen finance solution matches the business’s cash flow patterns to avoid repayment stress.
Diversify financing sources: Utilise a combination of finance options to spread risk and maintain flexibility.
Monitor financial health: Regularly review the business’s financial performance and the total cost of any external finance facility to adjust strategies as needed.
Leverage relationships: Develop strong relationships with suppliers and financiers to negotiate better terms and rates
For commercial finance brokers, understanding and effectively communicating these aspects of working capital finance can have a significant, positive impact on the financial health and growth of their clients.
How to Calculate Working Capital
Understanding how to calculate working capital is fundamental for effective financial management. Working capital is the difference between a company’s current assets and current liabilities. The basic formula for calculating working capital is:
Working Capital = Current Assets – Current Liabilities
Current Assets
Cash and anything that can be converted into cash within a year, eg raw materials, accounts receivable, inventory, stocks, and bonds.
Current liabilities
Bills which are due to be paid within a year, eg accounts payable, payroll, tax, and overheads.
This formula provides a snapshot of a company’s short-term financial health and operational efficiency. Positive working capital indicates that a company can cover its short-term liabilities with its short-term assets, which is crucial for maintaining smooth operations and supporting business growth.
Octet Working capital solutions – powering business growth
Octet’s tailored working capital financing and payment facilities help businesses effectively manage their cash flow and facilitate sustainable growth. With Octet, businesses can:
access a flexible line of credit to power business trade
leverage unpaid invoices to access fast working capital
expand business operations with a flexible, tailored loan
use existing credit or debit cards to pay suppliers
streamline payments and take control of the supply chain.
We offer a comprehensive suite of financial solutions to empower businesses with the capital they need to thrive.
This solution helps manage cash flow by providing immediate access to up to 85% of unpaid business invoices, without the need for personal asset security.
Our innovative digital platform makes it easy to track, validate and authorise across each stage of a transaction.
Discover how to partner with Octet today
Octet is committed to supporting businesses through tailored financial solutions, helping them understand their cash flow and funding options and ensuring they are well-positioned to seize growth opportunities. If you’re a business decision-maker and want to know more, get in touch with the team today.
Or if you are a commercial finance broker with clients who could benefit from smarter working capital solutions, our Referral Partner Program empowers businesses across a range of industries with innovative working capital solutions.
Speak to our team of working capital specialists today to discover how we can power business growth.
Disclaimer: These comments are only our views and should not be construed as advice. You should act using your own information and judgment. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy, and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgment as at the date of publication and are subject to change without notice.
In the dynamic commercial landscape of regional Australia, a company operating in industrial insulation, cladding and roofing was on the brink of transformation. The company’s comprehensive service portfolio catered to a diverse range of industries, specialising in thermal insulation and fabrication. However, to stay competitive and meet the growing demands of their clientele, they needed to expand their operations and enhance their capabilities.
The key to unlocking their potential lay in securing adequate working capital finance. As such, the company sought a partnership with Octet to support their growth ambitions.
Boosting cash flow with debtor finance
Working with Octet’s Director of Working Capital Solutions, Dan Verdon, they identified debtor finance as a crucial component of their financial strategy that provided the company with the liquidity needed to manage their cash flow effectively. By leveraging their accounts receivable, they converted outstanding invoices into immediate working capital. This influx of cash enabled them to meet day-to-day operational expenses without delay, ensuring the smooth running of their business.
“The Debtor Finance facility was a game-changer,” said Dan. “It enabled the company to bridge the gap between invoicing and payment, reducing the stress associated with cash flow management.”
The initial requirement was for a $1.4m Debtor Finance facility. With steady cash inflow, the company could now focus on scaling their operations rather than worrying about payment delays from clients. It allowed them to tender for larger jobs, which triggered Octet to apply an immediate facility increase to $2.0m.
Empowering expansion through trade finance
Trade finance complemented debtor finance by addressing the specific needs of purchasing raw materials and equipment from suppliers. The $100,000 Trade Finance facility provided the necessary funds to secure critical inventory and equipment on favourable terms. This allowed the company to maintain a steady supply chain and meet the demands of their growing project pipeline.
By utilising trade finance, the business could negotiate better deals with suppliers, taking advantage of bulk purchasing and early payment discounts. This not only reduced costs but also ensured they had the materials needed to deliver projects on time and to the highest standards.
Dan states, “The client was particularly pleased with the unique feature Octet offered that enabled them to pay their current ATO debt through their trade facility.”
New investments in technology and equipment
One of the significant ways the company leveraged their working capital funding was through investment in state-of-the-art equipment and technology upgrades. The infusion of funds allowed them to purchase advanced machinery that enhanced productivity, efficiency, and safety. With cutting-edge tools at their disposal, the team could tackle complex projects with greater precision and speed.
These technological advancements positioned the company as a leader in their field, enabling them to deliver superior results to their clients. The ability to stay ahead of industry trends and continuously improve their service offerings became a competitive advantage.
Expanding the workforce and service offerings
Financing also played a pivotal role in expanding the company’s workforce. With the financial flexibility provided by debtor and trade finance, they were able to hire skilled professionals across various disciplines. The expansion of their team allowed them to take on more projects simultaneously, increasing their service capacity and ability to meet client demands.
Moreover, as market dynamics evolved, the company recognised the need to diversify their service offerings. The availability of working capital enabled them to explore new avenues and introduce additional services, such as asbestos removal. This diversification not only opened up new revenue streams but also made the company more resilient to market fluctuations.
Pursuing growth opportunities
The strategic use of working capital finance facilitated the company’s growth ambitions. With enhanced cash flow, upgraded equipment, and an expanded workforce, they were well-positioned to pursue larger and more lucrative projects. Their ability to deliver comprehensive solutions across various industries attracted new clients and strengthened relationships with existing ones.
Overall, the application of a Debtor Finance facility and a Trade Finance facility empowered the company to overcome financial constraints and drive business growth. By leveraging these financing options, they achieved operational excellence, expanded their service offerings, and positioned themselves as a dynamic player in the industrial sector.
“The story of their transformation serves as a testament to the power of working capital finance in unlocking a business’s full potential,” concludes Dan.
Grow your business with Octet
Via our Referral Partner Program Octet empowers businesses across a range of industries, including construction and engineering, manufacturing, transport and labour hire, offering innovative debtor finance and trade finance working capital solutions.
Speak to our team of working capital specialists to see how we can power your business growth today.
Disclaimer: These comments are only our views and should not be construed as advice. You should act using your own information and judgment. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgment as at the date of publication and are subject to change without notice.
Maintaining a healthy cash flow in an unpredictable economic climate is crucial for business resilience. Doing so ensures your business can meet its financial obligations and seize growth opportunities, but improving cash flow in business can be a challenge in many industries.
In this article, we provide practical information on business finance to improve your cash flow, helping your company not only survive but thrive in these more difficult economic conditions.
How to control cash flow in business
Cash flow is the lifeblood of any business, representing the movement of money in and out of the company.
Sam Ralton, Octet’s Director of Working Capital Solutions, VIC, TAS, SA, explains, “The importance of cash flow is the ability to pay for goods and services when they fall due. Profit is a snapshot of how much money the company’s earned after expenses, but that doesn’t mean that the cash flow is in a healthy position.”
In fact, many companies confuse high profit with good cash flow. While the two are somewhat intertwined, improving cash flow in business is much more about forward thinking, planning and strategy.
“In a growing business, cash flow management gets increasingly harder because although you may have good margins and you’re making a profit, there’s a lag in time before that money is available to you, and therefore the cash flow runway is restricted,” Sam explains.
Cash flow runways and forecasts
A cash flow runway is the period a business can operate before it runs out of money. Having a clear understanding of your cash flow runway helps you plan and ensures the business can cover its expenses for a set period.
Cash flow forecasts are equally important as they predict future cash inflows and outflows, allowing businesses to prepare for potential shortfalls. “Cash flow forecasts are a good tool and indicator of when your business can pull certain growth levers or, conversely, restrict unnecessary spend,” says Sam. “They’re essential to ensure you don’t spend money today that you may need in the near future.”
So, what are some practical strategies for managing your business cash flow opportunities and issues?
6 simple strategies for improving cash flow in business
Review pricing structures: Ensure pricing covers your costs and desired profit margins. Regularly review and adjust prices to reflect market conditions.
Increase sales: Implement more layered brand marketing strategies and explore new markets and product verticals to boost revenue.
Control expenses: Regularly review expenses to identify and cut unnecessary costs.
Faster payment collection: Implement stricter payment terms and follow up on overdue invoices promptly using appropriate accounting software.
Inventory management: Utilise technology to maintain optimal inventory levels, reduce any holding costs and free up cash.
Supply chain management: Negotiate better terms with suppliers to improve cash flow timings. Where it makes sense for your business model, early payments can sometimes create opportunities to discuss discounts with appropriate suppliers.
Debtor finance provides an instant cash injection by unlocking funds tied up in unpaid invoices. This liquidity helps cover operational expenses, supplier payments and even fund growth opportunities.
Sam advises, “Debtor finance can give you the cash flow required upfront. So if you need funds earlier, you’ve got the certainty of borrowing against your invoices rather than waiting for those payments to arrive under the original terms.”
Businesses that access debtor finance can execute more effective financial plans by better managing cash flow fluctuations and the uncertainty associated with extended payment terms or delayed payments.
Unlike traditional loans, debtor finance requires no personal assets as security. This flexibility allows you to access funds when you need them, without risking valuable assets.
Trade Finance cash flow benefits
Trade finance offers substantial cash flow benefits by providing a tailored line of credit that bridges the gap between purchasing and selling goods. This funding solution ensures that businesses do not have to tie up their cash flow in inventory that takes weeks to arrive, process and sell.
By introducing a financial partner, such as Octet, into the supply chain, businesses can access funds to pay suppliers immediately, whether they are local or overseas. This enables the business to maintain healthy cash flow, as they can repay the credit facility over time rather than having their working capital tied up in these often lengthy transactions.
Because you can set a competitive exchange rate for the transaction upfront, trade finance can also safeguard against currency fluctuations. This supports smoother and more predictable financial management and helps increase your business’ purchasing power.
Where to go for business cash flow solutions
Implementingeffective cash flow management strategies and leveragingworking capital finance products can help you confidently navigate economic uncertainties. But staying on top of business cash flow and utilising these strategies and products can be a complex exercise, even for the most experienced of operators.
That’s why seeking professional advice is often a good idea. Financial planners, accountants, commercial finance brokers and business finance experts can all provide valuable insights and tailored solutions. For earlier growth stage businesses, it’s really important to consult widely in order to find the most suitable cash flow advice for your unique business circumstances.
Keep your cash flowing
Improving cash flow is essential for business stability and growth. At Octet, we’re here to support your business at every stage, offering expertise and financial solutions tailored to your needs. Our working capital products are designed to help businesses in all industries manage cash flow effectively.
Our team can provide guidance on leveraging innovative supply chain finance solutions and tools to maintain consistent cash flow, crucial for sustaining and growing your business in these challenging conditions.
Contact us today for more information on how Octet can help your business thrive.
Disclaimer: The following comments are only our views and should not be construed as advice. You should act using your own information and judgment. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgment as at the date of publication and are subject to change without notice.
A new financial year is a great time to review the financial goals of your business. Financial goals help guide decision-making, measure progress and ensure business sustainability. Are you a business owner keen to take more control over your business’ trajectory? Or perhaps you’re a commercial finance broker eager to explore ways to better guide your clients. Now is a great time to reassess and implement new business goals.
In this article, we explore how to establish financial goals for businesses, the steps to achieving them, and where businesses can go for help.
Assessing your business’ finances
Financial goals are essential for all businesses, and while a new financial year is a great time to reassess your goals, Octet Chief Financial Officer Campbell McCallum says regular assessment throughout the year is key.
“Regular or periodic financial reviews allow business owners or executives to assess performance, understand financial health, and identify and react to potential issues and opportunities early.”
Campbell says assessing your finances doesn’t have to be onerous, especially if actioned regularly. “You’ve got to pick the form it takes and how often you do it, but that will be driven by the nature of your business and what you’re trying to achieve.”
Types of financial goals for a business
So, what are some examples of financial goals for businesses?
Examples of short-term financial goals:
Managing cash flow: Positive cash flow is critical for all businesses. Monitor income and expenses to maintain control of cash flow. Make adjustments or access business finance when needed.
Reducing expenses: Regular financial assessment will reveal areas where costs can be cut without compromising quality, such as renegotiating supplier contract terms or finding more cost-effective service providers.
Increasing revenue: Implement strategies to boost income, such as launching a targeted marketing campaign or introducing new products and acquisition channels.
Examples of long-term financial goals:
Expanding the business: Plan for growth by setting goals to open new locations, increase production capacity or scale operations digitally.
Entering new markets: Research new local and global markets, or diversify your customer base and revenue streams vertically or horizontally.
Investing in new equipment: Allocate funds for upgrading technology or purchasing new equipment to improve efficiency and productivity.
Improving profitability: Focus on strategies that will enhance business profitability over the long term, such as adjusting pricing, reducing costs and increasing operational efficiencies.
Steps to setting financial goals
Campbell says business owners should consider four simple questions when setting financial goals: “Where is the business currently? Where do we want to go? How will we get there? How do we track our progress?”
Step 1: Assessing your current financial situation
“The first step is conducting a financial health check.” At this stage, you should dive into the business’ financial statements to uncover cash flow trends, develop an understanding of profits and identify expense patterns.
Step 2: Defining specific and measurable goals
Campbell says using a simple framework like SMART helps set better goals. SMART stands for:
Specific: Goals should be well-defined and precise.
Measurable: They should include criteria to track progress and measure success.
Achievable: They should be realistic, considering available resources and constraints.
Relevant: Goals should align with broader business objectives.
Time-bound: They should have a clear deadline or timeframe.
Step 3: Developing a plan to achieve your goals
Next, it’s time to create actionable steps by allocating resources, setting budgets and assigning key tasks throughout the business.
“Once you’ve set your goals, it’s important to consider how you’ll get there,” says Campbell. “You’ll need to set the benchmarks and milestones that you’re going to measure against and have a comprehensive plan in place to help you achieve that.”
Step 4: Monitoring progress and making adjustments
Regularly adjust business goals based on performance and market changes.
“You ultimately return to where you started, with a financial review,” says Campbell. This might be a quick check-in once a month or something more rigorous on a quarterly basis. Again, the form and frequency really depends on your business and objectives.”
For steps on conducting a comprehensive health check of your operations, explore our business health check guide.
How experts can help
Campbell says professional advisors such as commercial finance brokers and accountants can offer expertise in a range of areas to support goal setting. “Your broker or accountant can guide you through the initial stages of financial planning. They can assist with structuring your financial strategy and providing valuable insights.
“There are also other subject matter experts who can assess the feasibility of your financial goals. Industry experts have a detailed understanding of market conditions and can provide insights based on certain themes and projections.”
And then there is Octet. “As a funding provider, we can help businesses throughout the process by providing tailored working capital solutions, including Debtor Finance and Trade Finance. Working capital finance allows businesses to maintain liquidity, manage cash flow and achieve their goals in a timely fashion.
“A great example is when a business experiences peaks and troughs in cash flow. Working capital finance can help smooth out cash flow fluctuations due to seasonal sales and other factors. Intelligently applied, finance can also help to free up existing business funds to drive growth or take advantage of opportunities.”
Achieve your financial goals with Octet
If the start of a new financial year has inspired you to set new goals for your business, or you’re a broker looking to better support your business clients, our working capital specialists can help.
Octet offers innovative financial solutions to fit businesses in various industries, including labour hire, manufacturing and healthcare.
Disclaimer: The following comments are only our views and should not be construed as advice. You should act using your own information and judgment. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgment as at the date of publication and are subject to change without notice.
Effective cash flow management is crucial for any business. It ensures that a business can meet its obligations, invest in opportunities and sustain operations even in challenging times.
However, managing cash flow can be complex. Economic fluctuations, slow-paying clients and restrictive supplier terms can all affect cash flow. To navigate these challenges, businesses must adopt robust cash flow strategies.
In this article, we will explore how to optimise cash flow and why deploying smarter working capital finance solutions can help you build a resilient, growth-oriented business.
Understanding cash flow
Cash flow measures the money moving in and out of a business over a specific period. It’s different from profit, which measures the financial gain after subtracting expenses from revenue.
“A business could make a profit on an individual transaction, but it has to have cash flow to ensure that it can restock or continue to offer its services,” says Sam Ralton, Octet’s Director of Working Capital Solutions, VIC, TAS, SA.
“A lot of fast-growing companies might have good profits because they’re increasing their workload and requirement for stock and staff, but this puts pressure on their cash flow because paying core items such as invoices and wages absorbs cash.”
Macroeconomic pressures such as rising interest rates and high inflation also put pressure on cash flow. In a survey of more than 4,500 small businesses worldwide, Xero found that 87% of small businesses in Australia experienced cash flow issues.
Commbank reports that the demand for business finance is increasing due to cash constraints. The bank also found unpaid invoices significantly impede business cash flow.
It’s perhaps not surprising that the latest figures from Creditor Watch show that defaults in business-to-business transactions have reached record highs.
How to manage cash flow
Budgeting and forecasting are essential to effective cash flow management, providing a clear picture of a business’s financial health and guiding strategic decisions.
Creating a cash flow projection involves estimating future income and expenses over a specific period. Start by listing all revenue and investments. Then, detail all anticipated operating expenses, salaries and loan repayments.
Subtract the total expenses from revenues to determine the net cash flow for each period. This projection is crucial, especially around the end of the financial year, as it helps businesses prepare for potential cash shortages. Accurate cash flow forecasting ensures a business can meet its financial obligations, invest wisely and grow.
Accounting software, such as Xero and MYOB AccountRight, and cash flow forecasting tools help track cash flow. These technologies offer numerous benefits, such as automating processes, reducing staff hours, minimising errors and providing real-time insights into cash flow status.
Working capital solutions for cash flow management
The RBA has found that more access to financing is needed for businesses to grow and innovate. Younger businesses without cash reserves and established businesses with cash flow challenges both face financing issues.
Working capital finance solutions can help.
Sam explains. “Business cash flow essentially consists of payables and receivables. With financing, these become levers you can pull to improve cash flow.
“You can make your payables work better for you by extending terms from your suppliers through trade finance, for instance. Then, with receivables, you can use debtor finance to essentially reduce the time from when you raise an invoice to when you get paid.”
By streamlining cash flow management through smarter working capital finance solutions, software and technology, businesses can make more informed decisions and improve overall financial health.
How Octet can help
Octet offers working capital finance solutions to help businesses better manage cash flow.
“Our Trade Finance facility is a flexible line of credit that helps businesses navigate payment issues and transact more efficiently with domestic and international suppliers,” says Sam.
Trade finance helps improve relationships with suppliers, ensuring accelerated supply chains, which is crucial in industries such as healthcare, manufacturing and wholesale.
“Our Debtor Finance facility gives businesses fast access to cash without having to wait weeks or months for their invoices to be paid. We help you free up that cash so you have the capital to buy more stock and move on to the next job. And our facility seamlessly integrates with accounting tools such as Xero and MYOB AccountRight.”
Debtor finance is particularly effective for businesses that need to pay their invoices promptly but don’t always get paid on time, such as in the labour-hire industry, where outstanding invoices can often be a hurdle to growth.
Debtor finance relies on the business’ receivables rather than using personal or business assets to secure financing. “By leveraging their receivables, businesses can fund their growth by using what is often their biggest asset, without risking personal property,” says Sam.
“This self-sustaining facility ensures that if the company winds up, the debt is paid off through its receivables.”
A finance partner you can trust
Cash flow is critical to business success, but it can be hindered by external economic pressures, slow-paying debtors and tighter supplier terms. However, cash flow strategies and working capital finance solutions are effective, sustainable ways for businesses to weather financial storms or take advantage of lucrative opportunities and grow. Talk to Octet’s team of working capital specialists to discover more today.
Disclaimer: These comments are only our views and should not be construed as advice. You should act using your own information and judgment. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgment as at the date of publication and are subject to change without notice.
Maintaining robust cash flow, navigating slow sales periods or capitalising on growth opportunities are several reasons why businesses might seek additional funding sources. These businesses will discover that there are many financial solutions available, and choosing the most suitable one can be daunting.
Invoice financing, also referred to as debtor finance, is a funding mechanism that allows companies to unlock capital tied up in their outstanding B2B invoices. It’s the ideal funding solution for businesses experiencing rapid expansion.
As a business owner, if you’ve started researching invoice financing no doubt you’ve encountered a range of terms, definitions and financial products, such as invoice funding, invoice factoring, and confidential and disclosed offerings. So, what is invoice financing, what are its benefits, and how can it serve your business? We explore these questions, uncovering the financial instruments available and their role in supporting businesses across various sectors.
How invoice finance works
Efficient cash flow is vital to establish, operate and grow a business. Solid cash flow allows a business owner to sustain operations during quiet periods and seize new opportunities to expand their offerings. It’s vital for business growth and to forge strong ties with suppliers and partners by ensuring timely payments.
However, cash flow can stagnate if you experience delays in customer payments. This is where invoice finance comes into play, providing immediate access to the capital bound in your company’s outstanding invoices.
Sam Ralton, Octet’s Director of Working Capital Solutions, explains. “There are several terms for these products. Invoice finance, receivables finance, debtor finance — they all cover the same broad offering, which considers the receivables ledger or the outstanding invoices, and facilitates funding against them.”
There are primarily two approaches to financing outstanding receivables and ensuring a consistent cash flow: invoice factoring and invoice discounting. Let’s delve deeper into these methods.
What is invoice factoring?
Invoice factoring is a form of invoice finance where you bring your B2B accounts receivable to a financing company. This financier then provides you with a substantial portion (typically up to 85%) of the invoices’ value immediately in exchange for a small fee.
The financing company takes over collecting and processing payments from your customers or clients. After the financier has recovered the amounts due, they will forward the remaining funds to the business, deducting a nominal service fee.
By transferring the debt collection task to a finance company, you may reduce administrative expenses and free up your team’s time. The drawback is having slightly less control over some operational interactions with your clients.
Factoring services often include the management of the sales ledger, such as allocating payments and issuing statements and reminders. As a result, the costs might be higher than other invoice finance services. It’s also apparent to your clients that a third-party financier is involved, as they will direct their payments to the financier.
Sam says you probably won’t hear the term ’factoring’ in contemporary finance as reputable finance providers like Octet offer more tailored invoice finance solutions and collaborative partnerships. “Invoice factoring used to be fairly intrusive. Businesses found they had to hand in every invoice, and the financier would chase up the debts.
“At Octet, we have finance relationship managers who are constantly collaborating with clients to identify cash flow issues or opportunities and assist with these.”
What is invoice discounting?
Invoice discounting is different from invoice factoring in one crucial aspect: debt collection remains your responsibility. Invoice discounting typically applies to the total ledger balance, rather than individual invoices. So, this approach can help even out cash flow variances throughout a given period.
This method allows you to retain the management of your sales ledger, so is more appealing to businesses that want to maintain control over this vital component of operations. As such, invoice discounting offers more confidentiality; your customers remain unaware of the financing arrangement with your financier.
Let’s further explore the differences between a confidential and disclosed facility.
Confidential and disclosed invoice finance: a comparison
A confidential invoice finance arrangement is one where your customers are unaware that a financing company is involved. Here are a few things to consider:
There is no obligation to disclose to your customers — the debtors — that your business is using invoice finance, nor does the finance company generally contact them.
Once your confidential facility is approved and established, you’ll inform your debtors of a change in bank details to a new account, which the financier manages on trust.
You submit invoices to both the financier’s platform and your customers. The finance company advances up to 85% of the invoice amounts to you. Following your customers’ payments into the trust account, the finance company will send the remaining balance to you after deducting a service fee.
This method allows you to continue your established accounts payable processes. While you retain the duty of managing payments, you also maintain full control over customer relationships.
Conversely, with disclosed invoice finance, all parties know and consent to the financing arrangement. Here are a few things to consider:
Your invoices will inform your customers about the involvement of the third-party financier, who will also have the authority to pursue outstanding payments.
With a disclosed facility, the finance company reaches out to your customers when an invoice is submitted. These customers will pay into a financier-managed trust account, knowing it is separate from your business’ account.
You might have to pay higher fees for a disclosed facility due to the finance company’s increased involvement in implementing its own debt management strategies.
Like the confidential method, you receive an advance of up to 85% of the total invoice value quickly. The finance company then takes on the role of coordinating with your customers to secure payment. When your customers fulfil the invoice, the finance company transfers the remaining funds to you, less their fees.
This option also delegates the debt collection process to the financier and ensures transparency for everyone involved.
Choosing between confidential and disclosed
So, which is best for your business — confidential or disclosed financing? That depends on a couple of factors. Firstly, the strength of your business’ credit rating. A solid rating may qualify you for confidential options and the corresponding lower fees.
Secondly, your preference for control. Some businesses will want to retain direct management of debtor relations, while others prefer to outsource it.
As businesses become more comfortable with external management of their debt collections and customers become accustomed to third-party involvement, using a financier makes sense as a strategic cash flow decision. Leveraging one of your most significant assets — your receivables — can accelerate your business growth, benefiting you, your suppliers and your customers.
The advantages of invoice finance
Why opt for invoice finance instead of traditional financing methods like a bank loan? Sam weighs in.
“A significant limitation of traditional bank financing is that banks like ’bricks and mortar’ assets, often insisting on property collateral to back business loans,” he says. “The problem is, not all companies have ample property assets for collateral, nor are they inclined to risk the personal assets of their directors.
“Invoice finance, by contrast, uses what is frequently the company’s largest rolling asset — the accounts receivable ledger. This ledger represents the cash customers owe to the business and it typically lies dormant until the payment terms are met. An invoice finance agreement leverages this asset for funding, circumventing the need for property or other personal guarantees.”
Banks are also notoriously slow to respond to funding applications, with some finance approvals stretching beyond six months. This delay means businesses suffer even more cash flow challenges or forfeit opportunities. Invoice finance arrangements, however, can be authorised in a fraction of that time.
Is invoice finance right for you?
When evaluating an invoice finance option for your business, there are a few things worth considering:
The associated costs will vary based on the financier, the specific product, the amount of management required by the financier and whether the arrangement is confidential or disclosed.
“Typically, costs are the interest rate on the borrowed sum and a service fee,” explains Sam. “There might be more work in a disclosed invoice finance facility, as the financier regularly assesses the ledgers.”
Sam adds that in his experience, the fees are only marginally higher than those of a conventional mortgage or overdraft.
The appropriateness of invoice finance will depend on your business requirements. Sam says some businesses have had negative experiences with invoice finance, but this is generally because the financier or product was unsuitable in the specific circumstances.
Apprehensive about relinquishing control of your ledger management to a financier? It’s a legitimate concern, so it’s even more important to partner with the right financier. Seek out an invoice finance company with a robust track record, advises Sam. “Trust in the stability of the financing company is crucial.”
Sam cautions against using finance companies offering rapid solutions. “There are many out there providing short-term loans at steep interest rates. These are quick fixes and aren’t conducive to long-term business viability. Partner with a financier who is committed to supporting your long-term business vision.”
Is your business ready for an invoice finance solution?
Consider these questions:
Due to your payment terms, is your business experiencing cash flow issues?
Are you unable to restock until invoices are paid?
Do you want faster-moving cash flow to ease the pressure?
Are there growth opportunities you want to pursue but can’t until you sort out your cash flow?
Do you contract with large corporations that set longer-than-average payment terms, leaving you with a shortfall?
Are you unable, or don’t want, to provide security like property to access funding?
If you answer yes to any of these, it’s worth considering invoice finance for your business.
“Most businesses that speak to Octet about invoice finance have high supply costs,” says Sam, who gives the example of a Western Australia labour-hire company that experienced depleted cash flow after taking on new customers. Octet provided a $2 million invoice finance facility and the cash flow injection helped the company increase its revenue significantly.
A NSW-based labour-hire company was in a similar position. In just seven years it had grown from a startup to turning over $30 million. Its bank couldn’t support its finance needs and the business had to turn away new work. So it approached Octet for a $9 million invoice finance facility. This allowed it to keep taking on new customers while paying its invoices on time.
Invoice finance allows businesses in agrowth stage to more easily fund their operation without having to wait for debtors to pay.
“These facilities grow with the business,” says Sam. “As you raise more invoices, you can generally access more funding.”
Octet, the invoice finance experts
With Octet’s Invoice Finance facility, you can convert up to 85% of your unpaid invoices to cash within 24 hours. Use this cash to more quickly pay suppliers, buy equipment, invest in more stock or expand your business via staff growth or product and marketing innovation. The solution is fast and flexible — use it as your primary funding source, or only for top-up funds
Octet’s Invoice Finance is available to new businesses, growing companies or well-established enterprises. We like to see an annual turnover of at least $1 million, an outstanding invoice value of $100,000+, and some demonstrated business trading history. But feel free to get in touch if you’re growing fast and turning over $500,000 or more, as we may be able to assist.
When looking for an invoice finance solution for your business, partnering with a reliable financier is essential. Since 2008, we’ve offered a suite of working capital solutions, with Invoice Finance among our specialties. Connect with us today to explore how we can fuel the expansion of your business.
Disclaimer: The following comments are only our views and should not be construed as advice. You should act using your own information and judgment. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgment as at the date of publication and are subject to change without notice.
Securing the right financial support from major banks is a common challenge for many businesses, especially those in industries requiring agility and tailored solutions. Traditional lenders often don’t address the specific needs and pressure points of these more complex business groups. Rising fees, rigid loan terms, and a lack of flexibility can stifle growth and operational efficiency, leaving businesses in desperate need of a more tailored approach to financing. This was the situation faced by this business consortium that operates across multiple industries, until they found a comprehensive working capital finance solution with Octet.
Struggling with financial constraints due to complexities of the business
In 2022, the directors of an interconnected group of companies, working across multiple industries, faced a daunting challenge. As new majority owners, they inherited several businesses struggling with cash flow issues and strained lender relationships. The relationship with their primary bank lender had soured, and rising fees from non-bank lenders compounded their financial woes. Two of their businesses, operating in the meat industry, demanded quick, reliable funding solutions, but their existing financial arrangements were not meeting their unique requirements.
The primary goal of the consortium was to gain more buying power and growth opportunities. They needed a financier who understood their business’ pressure points and could provide a comprehensive, tailored financing solution. Their business operations, particularly in meat wholesale, required a flexible approach due to the perishable nature of the products, which typically operate on shorter financing terms. Through their commercial finance broker, the directors sought a lender who could consolidate their multiple financing needs into a single, cohesive package.
Octet’s innovative supply chain finance: A flexible cash flow strategy
Enter Octet, with a bespoke working solution that addressed all of the business needs across the consortium. Initially working on a financing arrangement for one of the consortium’s operations, Octet was able to extend this to provide a comprehensive financing package that included a $4.25m debtor finance limit, $2m trade finance limit, and a $600k asset finance facility. This all-encompassing approach was designed to alleviate the pressures faced by the group.
Octet’s solution enabled one of the business directors to release the mortgage held over their home and terminate their trade facility with the bank. Additionally, by bundling all their financing needs into one package with Octet, the business was able to pay out, or reduce, the other remaining facilities with multiple non-bank lenders.
One of the most significant aspects of Octet’s solution was its tailored approach to the meat wholesale sector. Despite the industry’s challenging financing conditions due to the fast turnover of the products, Octet crafted a financing plan that provided the business with much-needed speed to market. This agility allowed the directors to secure supplier discounts by ensuring quicker and more regular payments, setting them apart from competitors.
Immediate and long-term benefits for the business
The impact of Octet’s financing solution was immediate and transformative. Within the first 24 hours of finalising the facility, the company was able to disburse $1.4 million in trade payments to their major suppliers. This rapid injection of working capital not only stabilised their operations but also enhanced their purchasing power.
The benefits extended beyond immediate financial relief. The new financing structure allowed the business to focus on strategic business planning and growth, rather than constantly managing cash flow issues. The agility provided by Octet’s tailored solution enabled the business to purchase more stock across different operations, breaking free from the constraints of their previous non-aligned terms.
With Octet’s comprehensive support, the company gained the financial flexibility and stability needed to thrive in the competitive meat industry. The partnership with Octet not only resolved their immediate challenges but also positioned the group of interconnected companies for sustainable growth and success, demonstrating how a well-structured and flexible financial partnership can turn around business fortunes and set a course for future prosperity.
Grow your business with Octet
Via our Referral Partner Program Octet empowers businesses across a range of industries, including food and beverage, manufacturing and transport, offering innovative Debtor Finance and Trade Finance working capital solutions.
Speak to our team of working capital specialists to see how we can power your business growth today.
Disclaimer: These comments are only our views and should not be construed as advice. You should act using your own information and judgment. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgment as at the date of publication and are subject to change without notice.
Effective cash flow management is critical to business success. But slow-paying customers, tightening supplier conditions and inflexible bank terms can all affect cash flow. Even thriving businesses keen to capitalise on growth opportunities can face roadblocks due to cash flow fluctuations.
Many businesses are turning to debtor finance as a strategic financial solution. Whether you’re a commercial finance broker looking for the best deal for your clients or a business owner facing the daily challenge of managing cash flow, you understand the common challenges. Perhaps you’ve even explored debtor finance products such as factoring and invoice discounting but want to know more about leveraging outstanding invoices to access efficient working capital. In this article, we explore why more and more businesses are turning to this effective financial solution.
Common cash flow challenges
Businesses today face a range of cash flow challenges. Whether it’s customers delaying payments, renegotiating longer terms, or suppliers shortening or eliminating payment terms, Octet’s Director Working Capital Solutions Dan Verdon has heard it all. “The current challenging economic conditions are putting a strain on cash flow, but many business owners hesitate to address these critical issues early. That’s a mistake.”
Even thriving businesses are feeling the pinch from their traditional finance partners. “The banks and larger lenders are becoming slower and less responsive when providing loans that support business growth,” Dan says.
“Dealing with changing account managers and lengthy processing times is really frustrating for businesses in various stages of growth. Debtor finance is a reliable alternative to a traditional bank loan, offering businesses confidence in accessing working capital quickly and easily.”
Do any of these cash flow challenges affect you?
late-paying customers
restrictive bank conditions
extended payment terms.
Debtor finance could be the answer.
Take control of your cash flow with debtor finance
You might have heard the terms factoring and invoice discounting, invoice financing or invoice funding. But what do they actually mean?
They’re all broadly debtor finance solutions. Invoice factoring involves a business selling its accounts receivable to a financier, who gives them an upfront payment (up to 85% of the invoice value). The financier collects payments from the business’ clients, takes a small fee and passes the remaining funds onto the company. Invoice discounting is similar but with a critical difference — it’s the business, not the financier, that collects the debts.
The terms invoice factoring and invoice discounting are used less these days, as innovative finance providers like Octet offer more tailored debtor finance solutions.
These facilities use a major asset already in the business — the unpaid customer invoices — to sustainably meet its cash flow requirements. Debtor finance is tailored for growth and can reduce cash flow risk.
Joe advises his business clients to set up a debtor finance facility before they need it. “There is a small service fee to have the facility there, but this fee is upfront and predictable, and you only pay interest when you draw funds.”
While debtor finance helps mitigate cash flow gaps and maintain stability during volatile periods, Dan says this type of finance isn’t just for businesses facing challenges. “Debtor finance is used by many thriving, growing businesses looking for a line of credit to appropriately manage their cash flow.”
Businesses use debtor finance to:
enhance liquidity to meet operational needs and explore growth opportunities
take advantage of a tailored solution to suit their needs and cash flow cycles
streamline collections and administrative tasks
unlock potential for expansion and take on new projects
access expertise and tools for efficient credit control and debtor management.
Why brokers and businesses choose Octet for debtor finance
Dan says businesses in a range of industries access debtor finance to help grow their business. “Common industries we service include labour-hire, food and beverage, manufacturing and wholesale. But whatever industry you’re in, if you’re a B2B business, debtor finance can work for you.”
While many business owners are considering their financing options, brokers are also exploring solutions for their clients. Brokers can play a crucial role in helping businesses navigate these cash flow challenges and make informed financial decisions.
“Whether you’re a business owner, a broker or an accountant, if you’re considering debtor finance, take the time to assess the business’s financial position, cash flow forecasts and growth objectives before speaking with a financier.
“Our advice to business owners and brokers is to partner with reputable providers. At Octet, we offer a broad range of working capital solutions tailored to each business.”
get up to 85% of business invoices as a cash advance
can access funds without personal asset security
enjoy the flexibility of their debtor finance facility growing as their receivables grow
can seamlessly integrate the facility with their existing accounting software such as Xero and MYOB AccountRight.
Are you a commercial finance broker? Simply refer your client, and we’ll handle the rest.
Tailored debtor finance solutions for every business
Octet’s Debtor Finance solutions are designed for businesses to meet cash flow challenges, better manage fluctuations, capitalise on opportunities and grow. Whether you’re a business owner ready to explore their finance options or a broker who wants to see their client’s business soar, debtor finance could be the solution for you. Get in touch today.
Disclaimer: The above comments are only our views and should not be construed as advice. You should act using your own information and judgment. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgment as at the date of publication and are subject to change without notice.
For businesses planning for growth and longevity, an understanding of business finance is not just beneficial. It’s essential. This knowledge helps safeguard financial health and equip businesses to make strategic decisions, ensuring they thrive in competitive markets.
In this article, we’ll answer the following questions: What is business finance, what are common financing options, and when is it time to seek finance?
Tim Bowring, Octet’s Head of Sales, Health, also helps us explore the business financing options for the health and pharmaceutical industry. But regardless of the industry you operate in, these insights will help you to better understand the business finance options that can help your business grow.
Understanding the best finance options for your business
Business finance encompasses all types of financial activities crucial for day-to-day operations and long-term planning. It includes managing cash flow, budgeting and funding strategic initiatives.
Tim says businesses must first grasp how cash flow works when it comes to understanding finance. “Cash is king. It pays the bills and repays debt. Having a good picture of how your cash flow works will set you up to understand the most appropriate finance options available to your business.”
Tim says when looking at types of finance, there are several key factors to consider, such as:
How often will you want to draw down on the facility?
How quickly can you repay it?
Are there ongoing fees to be paid if you haven’t used the facility or drawn all of the limit?
What security do you need to get the finance?
“One common misconception is that the lowest interest rate is the most important thing,” he adds. “But the interest rate isn’t always paramount.”
When it comes to the healthcare sector, Tim helps secure funding for businesses who work with him on a range of needs, including:
paying ongoing wages for locum doctors and dentists
importing stock and equipment
manufacturing medical supplies and pharmaceuticals
covering IT service contracts.
Business financing options
There are many financing options for managing and growing a business. Many businesses rely solely on internal sources of funding (so the funds they generate as part of operations).
When seeking external sources, most business owners will be familiar with traditional forms such as bank loans and lines of credit. However, most businesses are experiencing tightening conditions, and banks can take months to approve finance applications. Banks also often seek personal security and collateral, which is a drawback for businesses that don’t have significant assets or don’t want to risk their director’s personal assets.
Equity financing is also an option for start-ups and growth-stage companies without steady cash flow. However, this dilution of ownership and long-term commitment are significant drawbacks of this type of finance.
Trade finance and debtor finance (also called invoice finance) are two other types of business financing options. Trade finance products help facilitate international and domestic transactions, mitigating risks and facilitating smooth transactions between buyers and sellers.
“If you have to pay for stock on delivery, for example, trade finance can provide you with extended terms,” says Tim. “If you have short payment terms, there are even ways to negotiate an early settlement discount with the supplier.”
Debtor finance (also called invoice finance) helps bridge cash flow gaps by allowing businesses to borrow against their receivables ledgers.
“A business that’s growing rapidly by offering competitive credit terms to its customers is likely creating a cash shortage in the business,” Tim says. “If it is buying stock that is paid at order or shipping, it is also negatively impacting the business’s cash flow. Invoice finance can unlock up to 85% of invoice values immediately, which is essential for maintaining operations and funding growth.
“In today’s challenging environment, businesses are feeling the cash flow pinch. The key to managing cash flow gaps is often intelligently tailoring the right business finance solution for your supply chain and growth requirements.”
Healthcare companies particularly rely on a smooth-flowing supply chain to support patient wellbeing and ensure the timely availability of medical and other supplies. For many businesses operating in the industry, business finance to manage cash flow is crucial to safeguard their supply chain and network.
Ready for better business finance? What you need to know
Before applying for any variety of business finance, Tim recommends preparing by having a detailed cash flow forecast and identifying any cash flow gaps. “Then, make sure you ask plenty of questions of the financier about their processes and the specific product/s to see whether they’re a suitable fit.”
Questions include:
What security is required to obtain the facilities?
What are the line or service fees?
Does the facility or platform protect my business from risk when importing from overseas?
What is the speed of transactions? How can you support my businesses to achieve growth, whilst making informed financial decisions?
“Octet has a proven track record of supporting Australian businesses. Whatever industry you’re in, we can help you accelerate supplier payments, general cash flow and foster stronger relationships with customers and suppliers with our Debtor Finance and Trade Finance solutions.
“The Working Capital Specialists at Octet will work with you to help you better understand your cash flow, where the gaps are and what options are available for funding those gaps.”
For those in the healthcare and pharmaceutical industry, these solutions can mitigate the unique challenges faced by the industry and make the most of growth opportunities.
Discover the best business finance fit for you
For many businesses, accessing appropriate business finance is crucial to achieving sustainable growth. Octet is committed to supporting businesses through tailored financial solutions, helping them understand their cash flow and funding options and ensuring they are well-positioned to seize growth opportunities.
Whether you’re in the healthcare industry and need timely supply finance chain solutions, you’re a labour-hire company with cash tied up in unpaid invoices or a manufacturer seeking new trade opportunities, we can help. Want to know more? Get in touch with the team today.
Disclaimer: The following comments are only our views and should not be construed as advice. You should act using your own information and judgment. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgment as at the date of publication and are subject to change without notice.
In the ever-evolving Australian business landscape, a family-owned wholesale steel supplies business sought to navigate the transition from growth right through to retirement. Facing financial hurdles amidst rapid expansion, on the advice of their commercial finance broker, they turned to Octet for tailored working capital solutions. Via a strategic partnership between the broker and Octet, the business created a clear runway to reach their goals.
Transitioning from solid growth to retirement
Under the management of a husband-and-wife partnership, this family-owned enterprise had flourished, boasting an annual turnover of $18 million. With projections indicating a climb to over $25 million in sales within two years, the future appeared promising.
However, financial complexities emerged. While ANZ provided vital support, including a $200,000 overdraft and a $1,000,000 Commercial Loan Facility, encumbrances against their home and accumulating shareholder loans strained personal finances. With retirement goals in mind, the owners aimed to fortify their superannuation, setting a target of $2 million for extra peace of mind.
Octet’s Debtor Finance Facility: A strategic cash flow solution
Recognising the delicate interplay between personal and business finances, the family-owned business sought expert guidance. Their broker engaged Octet, offering tailored working capital solutions to address the business’ complex needs.
Octet’s Debtor Finance Facility emerged as the appropriate strategic tool for financial agility. Leveraging the business’s approved $3 million receivables ledger, the facility provided an 80% advance, ensuring immediate access to funds. This facilitated settlement of the existing ANZ facilities, freeing the family from personal debt.
“This liquidity fueled the business’ growth aspirations and facilitated loan payoffs, marking a significant milestone for the business,” said Brendan Green, Octet’s General Manager – Working Capital Solutions.
Empowering retirement and financial resilience
Empowered by this financial restructuring, the business owners redirected their focus towards retirement planning. With an after-tax contribution of $100,000 into their superannuation and adjusted loan repayments, they aimed to bolster their super balance to $2 million over a decade.
Through the guidance of their broker, and smart working capital solutions from Octet, this husband-and-wife team avoided anchoring their retirement solely on potential business sales, ensuring financial resilience regardless of any outcomes.
Says Brendan: “With some expert advice and strategic manoeuvring, the business owners overcame challenges, aligning personal and business finances for a prosperous future.”
Grow your business with Octet
Via our Referral Partner Program Octet empowers businesses across a range of industries, including labour hire, manufacturing, wholesale and transport, offering innovative debtor finance and other working capital solutions.
Speak to our team of working capital specialists to see how we can power your business growth today.
Disclaimer: The following comments are only our views and should not be construed as advice. You should act using your own information and judgment. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgment as at the date of publication and are subject to change without notice.
Want to better support your SME clients? Managing cash flow is an SME’s number one priority — cash flow gaps can significantly affect operations and hamper growth. As a commercial finance broker, helping your SME clients identify, measure and bridge cash flow gaps will set you apart.
In this article, we’ll explore some key strategies and tips for managing cash flow. So let’s get started with some insights that brokers can use to proactively suggest tailored financial solutions that help to address cash flow challenges and drive business success for their clients.
Identifying cash flow gaps for your SME clients
Clearly, in order for you to offer solutions to your clients, you have to know what the key issues and opportunities are. Identifying cash flow or finance gaps and adding value to your existing service can really help strengthen your client relationships. And it starts by simply getting curious.
Dan Verdon, Octet’s NSW Director of Working Capital Solutions, says there are some simple questions you can ask your SME clients to identify any cash flow gaps:
Do you want to grow your business, or have you identified growth opportunities, but you can’t make it happen? “If the client is finding it difficult to grow to the next level, it might be because they don’t have the right finance in place,” says Dan. “Innovative working capital solutions can really help here.”
Are you finding you must turn away new business? “The client might tell you that they’re having to say no to orders or sales because they don’t have the working capital or the cash flow to actually service that customer or take care of those additional orders.”
Are your customers taking a long time to pay their invoices? “We often hear businesses complain that some of their customers take a long time to pay. They might be big businesses and good payers, but they take up to 70 days to pay. If you ask your SME clients what their average debt turn is and they say it’s beyond 30 days, that can cause cash flow issues.”
Business finance options
You’ve identified your client’s cash flow gaps and think a working capital solution might be the answer. So, is using debtor finance the best solution or is a trade finance facility the way to go? Could these solutions actually work together to help accelerate cash flow? Ask yourself, what is the best fit for my SME client and their unique supply chain and business requirements?
The good news for you is that there are solutions that can address these cash flow gaps. Today’s businesses have a range of finance products at their disposal, but beyond traditional forms of credit such as bank loans and credit cards, they might not fully realise their options.
Octet provides working capital solutions for SMEs across a range of industries. These solutions help improve cash flow and ensure the smooth operation of a business.
To explore growth opportunities
Debtor finance, also known as invoice financing, is a solution for businesses to access funds tied up in their receivables ledger without the need to use personal security or other collateral. It provides quick access to cash by leveraging unpaid invoices as an immediate cash advance.
A debtor finance facility can provide a robust solution where your client has a good business but encounters cash flow issues due to slow B2B payers.
With a debtor finance product (also known as invoice finance), the financier will effectively lend against the business’ accounts receivable ledger and provide quick access to cash, bridging the gap between when invoices are raised and when they are paid. There’s generally no need for personal security or collateral.
When fabricated steel supplier Builders Steel Direct wanted to seize a growth opportunity, it was hampered by strict bank conditions. The business came to Octet for a range of solutions, including a debtor finance facility that enabled the investment in new premises and machinery, leading to a significant increase in revenue.
“Octet’s got a proven history of facilitating growth for businesses,” says Dan. “Builders Steel Direct is a great example of that.”
To increase purchasing power
A trade finance facility could also be what the business is seeking. This revolving line of credit allows businesses to pay their suppliers quickly, mitigating some of the financial trade risks and allowing them to keep their supply chain moving smoothly. It also allows businesses to explore new trade opportunities.
“When you think of trade finance, many people immediately think of paying overseas suppliers. But it’s just as effective for paying domestic suppliers,” says Dan.
With trade finance, the financier pays suppliers immediately (which tends to keep them happy) and gives the business up to 120 days to repay.
Octet’s trade finance facility was the perfect solution for wellness retailer Go Vita. The business was increasing its number of suppliers and opening new stores but didn’t want its cash flow tied up in the process. The Octet facility allowed Go Vita to pay suppliers without delay while keeping its supply chain moving and the business growing.
Partner with Octet to power your SME clients
So, you’ve established that your client is interested in a working capital solution like a trade or debtor finance facility, but what’s next? Think Octet.
Unlocking a world of business possibilities since 2008, we have the experience to power a range of businesses across many industries. Our clients trust us to handle more than $4 billion in supply chain transactions every year.
We make it easy for commercial finance brokers, especially those who don’t work with these types of products every day. We structure the facility, help promote it to your clients, answer their questions whilst your brokerage reaps the rewards. Learn more about our Referral Partner Program, including the exclusive Qantas Business Rewards referral offer.
Our business clients choose Octet, and brokers refer their clients to us because we provide simple, fair and fast financing solutions. For example, with our streamlined Supply Chain Platform, businesses can track and manage every stage of their supply chain process, improving transparency and security for all parties.
We know your relationships are important, and we will keep you updated so you can continue to leverage the positive relationships you’ve built with your clients. Partnering with an established financier like Octet helps to cement your reputation and credibility.
The process is straightforward. Simply refer your client, and we handle the rest. After the initial meeting, you provide the business’ financials for our review. We’ll then walk your client through the recommended product and provide an indicative offer where appropriate. Once the offer is accepted, we settle the deal and get started. Your clients can then track, validate and authorise every stage of their transaction via our intuitive supply chain platform, enjoying all the benefits of having accelerated business cash flow.
Discover how to partner with Octet today
Octet partners with commercial finance brokers nationwide to help them empower their business clients. Do you have clients who could benefit from smarter working capital solutions? Get in touch with us today to discover how we can power your SME clients’ growth.
Disclaimer: The following comments are only our views and should not be construed as advice. You should act using your own information and judgment. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgment as at the date of publication and are subject to change without notice.
When it comes to complex and interconnected global trade, robust supply chain management practices are increasingly important to ensure your business is operating as efficiently as possible. As your business navigates through current geopolitical turbulence and economic uncertainties, the importance of having strong supply chain strategies becomes even more important. These global issues need to be considered not only in the context of supply chain management, but also in terms of critical external funding and cash flow solutions including supply chain finance, trade finance and debtor or invoice finance.
Impact of recent geopolitical events: Iran Drone Strike on Israel
The recent Iran drone strikes on Israel have sent shockwaves across international borders, igniting concerns over heightened tensions in the Middle East. As geopolitical tensions escalate in this already volatile region, businesses worldwide are left to grapple with the potential repercussions on their supply chains and such critical items as oil, iron ore and other natural resources. With inflation and interest rate volatility still a key concern here in Australia and other countries, robust supply chain management will continue to be a vital tool for mitigating risks and ensuring operational resilience.
By integrating risk assessment practices into your businesses supply chain management, you can proactively identify vulnerabilities and implement contingency plans. From diversifying supplier networks in other regions (or locally where possible) to leveraging advanced technologies for real-time monitoring, you can help to protect your businesses supply chain against geopolitical disruptions. On face value most of these global events appear a literal world away, but the impacts often hit a lot closer to home on real world items such as fuel and shipping container costs.
Strategic importance of China ties in supply chain management
Navigating this scenario could become even more intricate due to China’s involvement. China appears to strive for a delicate equilibrium in its Middle East relations, maintaining robust connections with various stakeholders. Notably, its close ties with Iran have come to the forefront, with reports suggesting Chinese support for Iran’s actions against Israel.
China’s pivotal role in the global economy underpins the strategic importance of its trade relationships. As a leading manufacturing hub and a key player, particularly in Australia’s supply chain networks, China’s economic movements exert significant influence on our fortunes. The interconnectedness of supply chains means that any developments affecting China can reverberate across industries and continents.
For Australian businesses engaged in international trade, maintaining a resilient and diverse supply chain often means spending time understanding China’s economic policies, trade agreements, and geopolitical positioning. The often discussed ‘Chinese housing bubble’, long-term tensions with Taiwan and many other areas have the potential to materially impact the Australian economy, with SMEs particularly vulnerable.
By forging strategic partnerships and adopting agile supply chain management practices, businesses can navigate through uncertainties and capitalise on emerging opportunities in the Chinese market.
Adapting supply chains to global uncertainties
Amidst geopolitical upheavals and geopolitical rivalries, the question arises: How does this affect global and local supply chains? The interconnected nature of modern supply chains means that disruptions in one region can trigger cascading effects across the entire network. From transportation delays to trade restrictions, businesses must contend with a myriad of challenges in sustaining the flow of goods and services.
Effective supply chain management means taking a proactive approach to risk mitigation, encompassing scenario planning, supply chain mapping, and supplier diversification strategies. By fostering transparency and collaboration across supply chain partners, businesses can enhance their agility and resilience in the face of geopolitical uncertainties.
Navigating geopolitical risks: implications for Australian businesses
For Australian businesses, the evolving geopolitical landscape poses both challenges and opportunities. As a nation heavily reliant on international trade, Australia’s economic prosperity is directly linked to global supply chains. The ramifications of geopolitical events, such as the Iran drone strike and geopolitical tensions in the Asia-Pacific region, reverberate throughout Australia’s economy.
From the mining sector to the agricultural industry, Australian businesses must assess the geopolitical risks inherent in their supply chains and devise strategies to mitigate potential disruptions. One emerging trade partner outside of China is India. In 2023 Australia and India signed the historic India-Australia Economic Cooperation and Trade Agreement (IA-ECTA):
making Australian exports to India cheaper
opening up new import opportunities
creating a slew of new job prospects for Australian businesses
The IA-ECTA is but one avenue that your business can diversify its global trading partners, ensuring that global geopolitical risks such as those currently occurring in the Middle-East and from China through Asia Pacific have a minimal impact on the supply chain and ultimately cash flow and bottom-line profitability.
Easing cash flow challenges via smart working capital solutions
In times of supply chain disruptions caused by geopolitical events, your business will often encounter cash flow challenges due to delayed payments or interrupted production cycles. This is where working capital solutions such as trade finance and debtor finance play a crucial role in mitigating financial strain.
Trade finance provides a flexible line of credit to power your businesses international and domestic trade transactions. It helps you manage the complexities of buying and selling goods and services across borders by providing flexible finance solutions tailored to your needs. Trade finance ensures parties involved in the transaction can navigate issues like payment delays, currency fluctuations and credit risks, enabling smoother and more secure trade operations.
Similarly, debtor finance, also known as invoice financing or receivables finance, offers businesses immediate access to cash by leveraging their accounts receivable as collateral. In the event of delayed payments from customers due to supply chain disruptions, debtor finance provides businesses with the liquidity needed to maintain operations and seize growth opportunities.
By integrating working capital solutions into your business’s financial strategies, you can effectively manage cash flow fluctuations arising from geopolitical events, thereby enhancing resilience and enabling cash flow for long-term growth.
Detailed and strong supply chain management practices are critical for businesses seeking to navigate the complexities of global commerce amidst geopolitical uncertainties. By embracing innovative technologies, forging strategic partnerships, and adopting agile supply chain practices, businesses can enhance their resilience and thrive in an increasingly competitive and global economy.
Octet’s tailored working capital solutions have supported many businesses with supply chain finance strategies. Contact our team of experts today for more information on how we can help power your business.
Disclaimer: The following comments are only our views and should not be construed as advice. You should act using your own information and judgment. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgment as at the date of publication and are subject to change without notice.
Whether it’s to improve cash flow, manage a sluggish sales period or realise growth potential, businesses will often need to seek external forms of funding. There are many finance options available, and it can be difficult, as a business owner, to know which way to go.
Debtor finance (also known as invoice finance) is often an attractive option for high-growth businesses. This form of funding enables a business to access funds tied up in its outstanding B2B invoices. And it’s a solution that is growing in popularity, with reports indicating more and more businesses are seeking this form of finance.
Start researching debtor finance and you’ll come across a range of terms, definitions and products, including invoice funding, invoice factoring, invoice discounting, and confidential and disclosed products. So, what is debtor finance, how does it work and how can it benefit your business? In this article, we explore these forms of financing, some of the products available and how they help businesses in a range of industries.
How debtor finance works
As any business owner knows, maintaining cash flow is the most powerful tool for starting, managing and growing your business. Strong, steady cash flow puts you in a better position to:
cultivate good relationships with your suppliers, as you’ll always have the funds to pay them on time
quickly take advantage of opportunities to invest in new products or services and stay ahead of competitors
weather financial storms when business is quiet, or you encounter supply chain issues.
But if your customers are slow to pay, that cash flow can get blocked. That’s where debtor finance products can help, by giving you access to funds tied up in your business’s outstanding invoices.
Sam Ralton, Octet’s Director of Working Capital Solutions, explains. “There are a number of terms used to describe these products. Invoice finance, receivables finance, debtor finance — they all cover essentially the same broad offering, which considers the receivables ledger or the invoices that are outstanding in a business and provide funding against those.”
Invoice factoring and invoice discounting are two ways to finance outstanding receivables to keep money flowing. Let’s explore these options.
What is invoice factoring?
With a debtor finance facility known as invoice factoring, you effectively sell your accounts receivable to a financier. In exchange, they give you an agreed percentage (often up to 85%) of the value of the invoices upfront — quickly and easily.
From there, the financier becomes responsible for collecting and processing payments from your clients. Once they’ve collected payment, they pass the rest of the money onto you, minus a small fee. Here are a few things to keep in mind.
Because you pass the responsibility of collecting payment to the financier, invoice factoring can potentially save you bookkeeping fees and staff time. The trade-off is that you forfeit some control over your day-to-day operations.
Invoice factoring companies generally help with sales ledger management by allocating payments, and sending statements and reminder letters. The associated fees are therefore higher than for some other debtor finance services because the financier does more work.
Your customers will know you’re using a financing facility because they need to deal with your financier.
What is invoice discounting?
Invoice discounting (also known as receivables discounting) is similar to invoice factoring but with one key difference. With invoice discounting, the financier doesn’t take on the responsibility of collecting the debt. Instead, that stays with you. This is what you need to know.
With invoice discounting, you manage your sales ledger, which means you keep control of a significant aspect of your business.
Rather than operating on an invoice-by-invoice basis, invoice discounting is usually based upon your ledger balance as a whole. This lets you smooth out any cash flow fluctuations you may have over the period.
Invoice discounting also lets you keep your funding confidential from your clients. They won’t know that you’re using a financier.
Whichever method you choose, both invoice factoring and invoice discounting let you tap into your accounts receivables to keep your cash flowing and your business growing.
The evolution of factoring and discounting
Sam says the term factoring is used less frequently these days. “In the early days, invoice factoring was fairly intrusive. Businesses found they had to hand in every invoice, and the financier would chase up the debts.”
Today, reputable finance providers like Octet offer more tailored debtor finance solutions and collaborative partnerships. “We have supply chain finance managers that are constantly in discussions with clients, looking for any cash flow issues or opportunities that may arise and assisting with these.”
“We have also seen the emergence of hybrid type disclosed invoice facilities that enable the business and financier to work in partnership. These allow the business to retain their receivables collections, with the financier simply sending monthly statements in support. It’s a lighter version of disclosed invoice finance and reflective of the progression of the product over the years.”
What’s the difference between confidential and disclosed debtor financing?
A confidential debtor facility is where your customers don’t know a third-party financier is involved. You’re under no obligation to tell your debtors (in other words, your customers) that you’re using debtor finance, and the financier does not contact them on your behalf.
It generally attracts lower fees as the financier can’t put their owndebtor management strategies in place, and your clients don’t know they’re involved.
With disclosed invoice discounting, all parties know and agree to the financing facility. Your invoices will need to include communication regarding the third-party financier, who has the right to contact your customers to chase payments.
There are generally higher fees involved as this allows you to hand off debtor collection procedures to the financier and provides full visibility for all parties involved.
How does confidential invoice discounting work?
Once your facility has been approved and set up, you’ll need to communicate a change in bank details to your debtors. The new account is held in trust by the financier.
You then upload invoices into the financier’s system at the same time you send them to your customers. The financier then transfers up to 85% of the invoice value directly to your bank account, often less than 24 hours later. Then, once your customers pay the invoice into the trust bank account, the financier transfers the balance to you, minus their agreed fees.
This process means you can keep your existing accounts payable procedures in place. Chasing up late payers remains your responsibility, but that also means you maintain control of that vital relationship.
How does disclosed invoice discounting work?
Once you’ve been approved for a disclosed facility, the financier will get in touch with each of your customers as you upload their invoices into the system. Your customers will need to pay the invoices into a bank account held in trust by the financier, as they would with a confidential facility. However, they will know that it isn’t your business’ bank account.
Just as with confidential invoice discounting, you’ll receive up to 85% of the invoice value within as little as 24 hours of uploading the invoice into the system. Then the financier will liaise with your customers to collect payment. Once the customers have paid, the balance of the invoice value will be transferred to your bank account, minus fees.
Which is best: confidential or disclosed?
The best choice for your business generally depends on two factors:
Your business’ current credit rating. If your business has a strong credit rating, you may be eligible for confidential invoice discounting.
How much control you want to have. Some businesses prefer to keep debtor management as part of their client relationships, while others are happy to hand it off to a third party.
Businesses are becoming more comfortable handing over control of their debtor management and customers are becoming increasingly used to a third party being involved. Engaging a financier to access your receivables means you’re being smart about your cash flow. Accessing one of your biggest business assets enables you to grow faster, which is better for you, your suppliers and your debtors.
The advantages of debtor finance
Why would a business choose debtor finance over traditional forms of finance, such as a bank loan? Sam explains.
“Banks focus on ‘bricks and mortar’ assets and are very keen on taking property security and effectively offering a mortgage when it comes to business lending,” he says, adding that this is one of the major disadvantages of traditional bank finance. “That’s because not all businesses have sufficient property assets to use as collateral, nor do they generally want to use their director’s personal assets as security.
“Debtor finance is effectively funding against the biggest asset in most businesses — the receivables ledger, which is cash owed to a business by its debtors or customers. That ledger typically sits there as an asset, not doing anything until paid pursuant to agreed payment terms. Because a debtor finance facility actually uses that asset as security for funding, it removes the need for directors or owners having to put up property or other security.”
Sam says banks can also be slow-moving, taking more than six months to approve applications for finance applications. In the meantime, businesses can miss out on opportunities or fall deeper into cash flow woes. Debtor finance applications, on the other hand, can be approved within a matter of weeks.
Is debtor finance right for you?
When considering a debtor financing product or facility for your business, there are a few things to keep in mind. Like any form of finance, there are costs involved. These will vary depending on the provider, the type of product, the financier’s workload and whether it’s a confidential or disclosed facility.
“Generally, there’s an interest component on the borrowed amounts and a service fee,” says Sam. “There’s a bit more work involved in disclosed debtor finance because the financier is constantly reviewing the ledgers.
“But businesses using a debtor finance facility are probably only paying slightly more than they would for a standard mortgage or an overdraft facility.”
The suitability of this type of facility depends on your business and its needs. Sam understands some businesses have had negative experiences with debtor finance, but that’s often the result of choosing the wrong financier or using a product not suited to the business.
Business owners might also be concerned about handing over control of their accounts receivable or ledger management to a third-party financier. This is why choosing the right finance partner is vital.
Look for an invoice financier with a solid reputation, says Sam. “You need to have comfort in the security of the business that’s providing funding and partner with someone that’s going to last.”
Some finance companies offer quick fixes, which Sam advises businesses to avoid.
“There are a lot of companies that do short-term loans at higher interest rates, fairly quickly, but it’s not going to help a business become sustainable in the long term. We’ve seen business owners take up short-term loans and then realise how expensive they are. My advice is to look for a financier that is going to be a long-term partner and understands the overall business strategy and success measures.”
Is your business ready for a debtor finance solution?
There are several reasons why you might be considering debtor finance for your business. Due to your payment terms, you might be experiencing cash flow issues, find that you can’t restock until invoices are paid, or simply want faster-moving cash flow to open up growth opportunities.
“Most businesses that speak to Octet about debtor finance have high supply costs,” says Sam. “Let’s take the example of alabour-hire company, which will raise an invoice after the work has occurred. But they must pay staff before their invoices are paid.”
Debtor finance allows these businesses to fund their workforces without having to wait for debtors to pay. This is particularly helpful in the growth stage of a business.
“These facilities grow with the business because as you raise more invoices, you can generally access more funding,” Sam says. “And as a business winds down, the facility pays itself out so the directors aren’t left with a large hole that takes away their property.”
A fast-growing business was exactly the opportunity facing a NSW-based labour-hire company that recently sought Octet’s help. The business grew from a humble startup to turning over $30 million in just seven years, and it had outgrown its bank, which just couldn’t keep up with its need for flexible and fast funding. The business didn’t want to turn away new customers but it just didn’t have the cash flow to take on new business and pay its debtors on time. Octet’s debtor finance solution filled that gap.
A Western Australian-based network and telecommunications parts wholesaler was also outgrowing its existing funding arrangement when it turned to Octet. The business was growing fast, but its available capital couldn’t support that growth. Octet provided a notified (disclosed) invoice discounting line with a $600,000 funding limit. This gave the business a line of credit where it could access up to 85% of the value of its invoices as cash within 24 hours of customer sales.
Octet, the experts in debtor finance
Octet’sDebtor Finance facility lets you convert up to 85% of your unpaid invoices to cash within 24 hours.
But is it the right funding choice for you? It might be a good fit if your business:
offers longer payment terms to customers
is seasonal
contracts to large corporations that can set their own (longer-than-average) payment terms.
Debtor finance gives you the cash flow to pay suppliers, buy equipment or expand your business. Because it’s based on your outstanding ledger balance, the amount of finance you have available generally grows as your business does.
Unlike many other types of finance, you don’t need to provide security like property. So, if you’re a business owner who doesn’t have personal property, or your assets don’t have enough available equity, debtor finance may be your best option. It’s flexible enough that you can use it as your primary source of funding, or only for top-up funds.
Octet’s Debtor Finance is available to businesses ranging from newer companies to well-established ones. Ideally, we would like to see an annual turnover of at least $1 million, an outstanding invoice value of $100K+, with some demonstrated business trading history (but don’t hesitate to contact us anyway if you’re fast-growing and turning over $500,000 or more, as we may be able to help).
Discover more about debtor finance
Considering a debtor finance solution for your business? You’ll want to team up with a financier you can trust. Theright solution for you will depend on factors like how big your business is, your assets and the funding amount you need to inject.
Octet has been providing working capital solutions, including debtor finance, since 2008. Talk to us today to discover how we can power your business growth.
Disclaimer: The following comments are only our views and should not be construed as advice. You should act using your own information and judgment. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgment as at the date of publication and are subject to change without notice.
Australian businesses have traditionally been strong importers and exporters. As a nation, we exported $432.46 billion and imported $334.11 billion worth of goods and services in 2022.
For any business that trades internationally, cash flow can be a major stumbling block to success, particularly if they want to grow to service new markets. In fact, a lack of working capital can make even the strongest business stagnate. Do any of the following sound familiar?
You understand you need extra funding to grow, but you’ve exhausted all of the traditional funding options.
You’re confident your business will continue to flourish based on past performance, but you’re not sure how to best fund new opportunities.
You’ve borrowed all you can from your bank based on your personal or business assets, and you’re not sure where to turn next.
That’s where a trade finance facility can help. But what is trade finance? This form of funding works as a revolving business line of credit that gives you the working capital you need. It helps to plug financial gaps by immediately funding a transaction so your supply chain can continue uninterrupted. Trade finance can provide funding for new opportunities or help to shore up businesses that are feeling cash flow strain on supplier payments.
In this article, we dive into what trade finance is, the advantages of this type of facility, how you can work out if it’s right for your business and more.
The lowdown on trade finance
Trade finance is a well-established business funding solution. Globally, the trade finance market was valued at more than $14 trillion in 2022. In simple terms, trade finance is a business ‘line of credit’ facility that’s ideal if you buy from other businesses, whether they’re overseas or based in Australia. Trade finance is used in every industry, including retail, manufacturing, food and beverage, pharmaceuticals, healthcare, eCommerce and more.
Let’s face it – if you’re importing or even buying locally, you don’t want all your available cash tied up in paying for goods that can take weeks to arrive. And then you can’t even begin to make your money back until you have the items in stock and start selling them.
Trade finance funding works by bridging the gap between paying for your goods and recouping your money when you sell them to customers. This kind of financing gives your business quick access to funds by introducing a trusted financial partner, such as Octet, into your supply chain.
The high-level trade finance process is simple:
Your business purchases goods from your suppliers, either in Australia or overseas.
Your financier extends you a tailored line of credit to pay those suppliers immediately.
You then repay your financier with extended credit terms.
Without finance, the longer it takes between ordering/receiving the goods and making payment, the longer your working capital is tied up in the transaction. Trade finance helps bridge that general gap. As a buyer, it lets you pay your suppliers immediately and then repay the credit facility over time. As a seller, it allows you to get paid as soon as possible to keep your own cash flow healthy.
Advantages of using a trade finance facility
Businesses use trade finance tofund their business growth and to plug cash flow gaps. But what are the real benefits of using a trade finance facility over another form of funding? Here are our top four reasons.
Control your working capital
Choosing a business line of credit like trade finance over a traditional loan means you don’t have to offer your business or personal assets as collateral.
Traditional financial institutions usually demand asset security before they lend you money. So, if you’re short on personal/director’s assets, have maxed out your borrowing limit or don’t want to use your assets as collateral to begin with, your business can stagnate.
Trade financiers often lend based on the strength of your business’ balance sheet and the risk of the supply chain transactions, not on your personal assets. They examine your overall business and transaction values to determine your credit limit. That makes it easier to grow and scale your business as your sales increase. As your transaction values and profitability grow, so can your funding limit.
This benefit is significant if your business, industry or market is experiencing supply chain issues. Disruptions to your supply chain can widen your funding gap. With Octet’s Trade Finance facility, you can close this gap and provide your business with a cash flow advantage by extending your payables by up to 120 days.
With our intelligent solution, we pay 100% of supplier invoice values, including any upfront deposit requirement. When combined with interest-free terms of up to 60 days, you’ve got a flexible and powerful financing tool for your business.
Flexibility with global transactions
International trade is complex at the best of times, so anything that makes the process smoother has to be good for your business. Using a trade finance platform makes it easy to pay global suppliers using other currencies.
Currency fluctuations are an inherent risk in any international transaction. If the rate between the Australian dollar and your supplier’s currency changes dramatically overnight, you could suddenly owe a lot more than you’d budgeted. Trade finance can safeguard against these currency fluctuations by setting the exchange rate for the transaction upfront.
Our Supply Chain Platform gives you single-click payment across 72 countries in your choice of up to 15 currencies, which greatly reduces costly bank FX conversion fees and margins. Or you can bring your own third-party forward exchange contract to the transaction via our supply chain platform too. In just one click, you can authorise the payment, knowing that the FX is handled quickly and easily in a single, hassle-free step.
Early repayment discounts
Using a trade finance facility makes your cash available shortly after you receive your supplier’s invoice. This enables you to take advantage of anyearly settlement discounts your suppliers may offer (or you’re able to negotiate). This can ultimately save you money on your goods and services and allow you to repay your financier over a longer timeframe.
With the Octet Trade Finance solution, you can pay both international and domestic suppliers. And for those domestic suppliers, this can be related to invoices for goods or services. This flexibility allows you to use the funding and seek early payment discounts for a broader scope of supplier types and transactions than other funding options may allow.
Reduce global trading risk
Trading internationally always comes with anelement of risk, and there are often few, if any, safeguards. If you’re an importer, there’s no guarantee that your goods will actually arrive. As an exporter, you risk not being paid on time, or at all, once you’ve sent the shipment.
A smart solution like our Trade Finance facility makes it easier and safer to trade, regardless of which side of the transaction you’re on. That’s because both the buyer and supplier are registered and linked to one another on theOctet Supply Chain Platform. Both parties to a transaction must sign up for the facility and be verified before it can proceed. We verify both parties to make sure they’re legitimate, which helps to significantly reduce these global trading risks.
The platform’s embedded claim and authorisation process also enables seamless communication between both parties. This ensures transparency and nullifies any payment dispute risk. It’s a win-win.
Is trade finance right for you?
As with any financial decision, it’s essential to do your homework and make sure both the financier and product are suitable for your business before applying for a trade finance facility. It’s important to ensure your finance partner has the reputation and experience to handle this type of finance securely.
The top four factors to consider when you’re researching trade finance solutions are:
Eligibility
Not all businesses are eligible for trade finance funding. A financier will base eligibility on factors such as size, industry and the business’ specific requirements. For example, our Trade Finance solution is open to profitable Australian businesses with an annual turnover of at least $3 million.
Costs
As with any financing solution, there’s a cost to using trade finance. That means you need to understand your profit margins and expenses so you can build the finance fees into your supply chain.
The cost of a trade finance product varies depending on the length of time you use it and the type of facility. But once factored into your budget, the facility fees can become a normal business cost.
Product suitability
Most financiers offer a range of products, but not all will suit your business. Do your research and seek advice on which product is best for you in your circumstances.
In addition to ourTrade Finance product, we also offerDebtor Finance,Supply Chain Accelerate andOctetPay. You might find that a combination of these products may be the best fit for your business.In fact, by combining Debtor Finance and Trade Finance facilities on our Supply Chain Platform, we can give your business an integrated funding package. Incorporating both facilities gives you a back-to-back financing solution featuring:
a business line of credit to pay suppliers, with extended repayment terms (Trade Finance)
an instantly drawable funding source leveraged against your receivables (Debtor Finance).
This can simplify those periods of rapid growth, especially when you win new projects or contracts with initial expenditure requirements. With these solutions, you can leverage the increased sales revenue and mobilise that cash flow to close the funding gap.
Clear obligations
Most financial products can appear complicated when you start out, but they should have clear terms that they require both parties to follow.
Make sure you understand any obligations that come with the funding facility. If you’re unsure of anything, get your financier to explain exactly what you need to do to fulfil your obligations for their product.
Octet’s Trade Finance: close the cash flow gap
Octet’s Trade Finance facility gives you the power to bridge the cash flow gap. To be eligible, your business will generally need to have:
a turnover of at least $3 million
been trading profitably for at least two of the past three financial reporting periods
a positive balance sheet net worth
up-to-date ATO payments
current management and financial accounts.
The amount of funding you can access depends on your business. We’ll look at your most recent financials and management accounts to calculate a limit based on factors including:
your equity
your cash position
how profitable your business is.
Advantages of our Trade Finance facility
Close your working capital gap. We offer up to 120-day repayment terms and 60 days interest free, so you can pay your suppliers immediately and then repay us over time.
Unsecured. Our non-bank trade finance can be completely unsecured, meaning that we don’t require your real estate or personal assets as security to offer you finance. Alternatively, we also offer secured Trade Finance options.
Quick turnaround. You’ll get an answer to your finance application within days, not months. That’s much faster than traditional options.
Flexibility. You can use our finance either as your main funding source or to supplement traditional financing. So, if you want to diversify or your bank isn’t servicing your needs sufficiently, you can use trade finance as top-up funding.
Easy international trading. Our Trade Finance facility makes it easy to pay suppliers in more than 72 countries in a choice of 15 global currencies.
Secure platform and trading. We verify all members in our system to give you confidence that your trading partners are legitimate. Our information systems use best-in-class firewalls, encryption, hardware and procedures to keep your datasecure.
How does our Trade Finance facility work?
Our Trade Finance facility has a simple workflow.
Submit your application. Applyonline, and if you’re successful, we’ll approve you and give your business a facility limit.
Invite a trading partner. Add your domestic and international suppliers to the Octet platform. You don’t have to add all your suppliers to the system — just the ones you want to use the facility to pay. We’ll then ask them to enter their details so we can verify them.
Place your order. Add your order to the Platform. Our system will notify your supplier so they can accept the order. You can upload any documents needed for the transaction — such as the purchase order, invoice and bill of lading — through the Platform.
Authorise payment. Once the transaction is complete, you authorise the order and choose which funding methods you want to use to pay. This might be our Trade Finance facility, a credit card or a bank facility — or you could split the payment across multiple methods.
It’s that simple and safe. Our closed-loop Platform ensures the upload of all necessary documents, such as the bill of lading, before the order can be approved. That means you can be assured the transaction is valid before you pay.
How Octet’s Trade Finance accelerates business cash flow
Our Trade Finance facilityhelps you smooth out the cash flow fluctuations in your business.
For example, let’s say you sell sunscreen. As a seasonal business, you’ll need to order a lot of stock as the warmer months approach. Having a Trade Finance facility in place helps reduce the cash flow pressure that will build at that time.
Of course, regardless of the climate, other businesses may be flourishing and need extra cash to take advantage of opportunities for growth. In these cases, Trade Finance funding can provide a cash flow injection to help deal with demand.
This was the case for online wine retailer Vinomofo. The business had organically funded its growth without any debt since it began in 2011. But in 2020, when consumers moved to buying online during the pandemic, Vinomofo saw its opportunity to grow. Cash flow was good, but it needed a finance partner to take advantage of the deals on offer. Octet’s flexible finance allowed it to seize new opportunities faster than its competitors, which led to impressive and sustainable business growth.
Go Vita has also harnessed Octet’s Trade Finance. The health and wellness retailer was opening new stores nationwide and taking on new suppliers but wanted to preserve cash flow. The Octet Trade Finance facility allows them to do just that, and as Go Vita continues to grow, so too does the facility.
Discover if trade finance is right for you
No matter whether you need help to ride out the storm or fund exciting growth opportunities, trade finance will help your business power through.
Find out more about our Trade Finance facility and if it’s right for your business, or talk to usto find the best solution for your business needs.
Disclaimer: The following comments are only our views and should not be construed as advice. You should act using your own information and judgment. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgment as at the date of publication and are subject to change without notice.
A healthy balance sheet is the sign of a strong business. It paints a story of where it’s been, where it is today, and how it’s prepared for the future. A healthy balance sheet is a critical financial report when it comes to securing business financing, as it highlights the strength of your business and its ability to weather any economic storms. In the aftermath of global disruptions and the uncertainty of a constantly evolving economic landscape, it’s never been more important.
Why is a healthy balance sheet important?
A healthy balance sheet is about much more than a statement of your assets and liabilities: it’s a marker of strength and efficiency.
It highlights a business that has the optimal mix of assets, liabilities and equity, and is using its resources to fuel growth. With the right mix and a positive net asset position, a business is in a much stronger position to succeed.
But before we get into the details of what a healthy balance sheet looks like, let’s get back to basics.
Back to basics – what is a balance sheet?
In the simplest terms, a balance sheet is a statement of a company’s assets, liabilities, and equity at a particular point in time. This can include:
The balance sheet is a key financial statement that’s used to help assess the financial health of a business.
Structured around the basic accounting equation where assets are on one side, and liabilities with shareholder equity on the other, balance sheets contain important information to help calculate key financial ratios. Think of it as a snapshot of your company’s financial health at a given point in time.
What’s considered a strong balance sheet?
There are few tell-tale signs of a strong business, and a strong balance sheet is where you can generally find them. Not sure what’s considered ‘strong’ or ‘healthy’, or what to look out for? Here are some key indicators.
A positive net asset position
A positive net asset position is a measure of how a business is performing. This highlights whether a business is profitable and whether these profits are being reinvested back into the business. Companies with a positive net asset position are better able to sustain themselves during tough economic conditions and can make attractive candidates for working capital financing.
The right amount of key assets
Assets work best for a company when they’re actively providing value. For example, too much inventory can be a sign that stock isn’t moving quickly enough and highlights an inefficient use of cash. A low number of ‘stock in hand’ days, however, can be a sign of a well-managed asset and a business that’s getting this balance right, pending the specific industry of course.
More debtors than creditors
Having more money owed to your business than your business has owing is a sure sign of a healthy balance sheet. In fact, it’s one of the key indicators that your business is solvent. However, it’s necessary to take a deeper dive to understand inflated positions on your debtors and/or creditors. Ask yourself:
What terms are you offering your customers?
What terms have you been granted by your suppliers?
What is the ageing on the receivables and payables? Poor ageing on the receivables may signal invoicing issues or customers not paying on terms. Stretched creditors could reflect a cash flow issue in the business.
Your debtors and creditors are key assets and liabilities in the business balance sheet. It’s critical they are nurtured based on this level of importance.
A fast-moving receivables ledger
Slow-paying debtors can strangle the cash flow of a business. Ideally, cash flow would be moving relatively quickly. If not, this could be an area worth looking into. Why not consider early payment discount advantages or Debtor Finance?
Need a quick snapshot of your cash flow? Here’s how to calculate your working capital from your balance sheet: Working capital = current assets – current liabilities.
A good debt-to-equity ratio
Having a good debt-to-equity ratio means your company has enough shareholder equity to cover debts. This is especially important in the event of an economic downturn.
Can your business cover its debts in the event of a downturn? Here’s how to calculate your debt-to equity ratio from your balance sheet: D/E ratio = total assets/total liabilities.
A strong current ratio
Sometimes known as the ‘liquidity ratio’, the ‘current ratio’ is determined by dividing the business’s current assets by its current liabilities. This ratio is a key indicator of liquidity as it determines the business’s ability to pay its short term liabilities with its short term current assets. When calculating the ratio, anything less than 1 is an indicator that the business may have a liquidity issue. This is not itself a sign that the business is about to collapse however. It actually alerts the business that it’s in need of additional liquidity, such as Trade or Debtor Finance, to close the cash flow gap.
Why is it smart to have a healthy balance sheet?
A healthy balance sheet reflects an intelligent business – a business where there is the right balance between debt and equity, and the management team is using debt to propel the business forward.
One of the key indicators of a smart business is how effectively it uses its resources. While having assets is undoubtedly a positive, having too much equity tied into your cash isn’t necessarily a sign of an efficient business. Shareholders are primarily looking for a higher return on their investment, and to do this their funds need to be put to good use.
Using debt to invest in more acquisition-generating and brand-building activity is a key consideration when assessing the strength of a business. It’s an efficient way to manage resources and shows confidence in the future growth of the business. With the right mix of debt and equity, you can invest in activity to grow revenue and profitability. And that’s where you can hit the sweet spot.
Ways to make your balance sheet healthier
If you’re looking to create a healthier balance sheet for your business, there are some tried and tested tactics that you can explore. You can:
Improve your inventory management. The cost of holding onto stock is high! If you have stock that isn’t moving or is obsolete, look into ideas to move it out the door. Consider sales, discounts or promotions to help turn the stock into cash that can be re-invested elsewhere. Untried distribution channels, including online marketplaces and platforms could be a genuine option also.
Review your collection procedures. Are your debtors taking too long to finalise their payments? If so, this is costing you and impacting your balance sheet. Reviewing debtor payment terms, offering early payment discounts or reviewing your systems can be some ways to help bring down your debtor days. It may be a good idea to read our tips for improving debtor management.
Assess non-income producing assets. Are these assets providing value to your business or are they just ‘lazy’ assets? If they aren’t being used to generate income or don’t have the potential to do so, selling them can be a quick way to pay down debt and improve your balance sheet.
By looking into these parts of your business, you can make some significant changes to the way you operate and improve the strength of your balance sheet. This means when you’re in a position to secure more finance, you’ll be better prepared.
Your balance sheet and securing finance
Are you looking to secure finance to help grow your business? Now that you know the importance of a strong balance sheet, it’s important to know that what healthy looks like will depend on the type of finance you’re looking to secure. Octet offer two primary sources of supply chain finance – Trade Finance and Debtor Finance. This is what we generally consider when providing finance under each facility:
Trade Finance
Trade Finance works as a line of credit businesses can access to help pay suppliers. There are a few key indicators we consider when assessing Trade Finance, which revolve around the financial health of the business. This means reviewing current and historical financial performance, as well as obtaining insight into the Balance Sheet position.
We also consider:
What is the net tangible asset position? This will help determine lending capacity and the resulting credit limits.
What levels of inventory does your company hold and what is the turnover? A quick turnover indicates efficient stock management and healthy cash flow.
What equity or loans have the shareholders of the business introduced or taken out?
What are the carried forward profits or losses of the business?
Want to know what other eligibility criteria we consider? Read about our Trade Finance facility here.
Debtor Finance
With Debtor Finance, receivables are used as collateral and, with confidential Debtor Finance, we also take control over the debtor’s receipts. As a result, we consider a broader range of factors when assessing suitability, including:
What do your receivables look like? What is the spread of debt, the age of the receivables ledger, and who are the debtors?
Does your industry have a clear sales process, with clear proof of delivery or hours performed?
Is your business trading profitably? If not, what initiatives are in place to improve the situation?
Want to know what other eligibility criteria we consider? Read about our Debtor Finance facility here.
Disclaimer: The following comments are only our views and should not be construed as advice. You should act using your own information and judgment. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgment as at the date of publication and are subject to change without notice.